Verbrec Limited (ASX:VBC), a leading engineering, asset management, project delivery, operations & maintenance, training and mining technology service provider, has announced an agreement to sell 100% of its shares in Competency Training Pty Ltd to RelyOn Australia Pty Ltd for $11.5 million in upfront cash. Verbrec serves the energy, infrastructure, and mining industries through their technical specialties; asset management, automation and control, pipelines, power, process plant and training, with capabilities that span across the entire life cycle of an asset. The transaction is formalised in a share purchase agreement.
The headline purchase price is subject to customary adjustments for working capital and net cash/debt at completion. The sale is conditional upon Foreign Investment Review Board (FIRB) approval, among other standard conditions. Upon completion, all staff, training facilities, and equipment of Competency Training will transfer to RelyOn. RelyOn is a leading global training services provider delivering safety and technical training to customers across the world, and RelyOn Australia Pty Ltd is its Australian-based subsidiary, currently serving customers nationally.
The divestment of Competency Training, acquired by Verbrec in 2008, will allow Verbrec to strengthen its balance sheet and pursue organic growth opportunities and strategic bolt-on acquisitions. These growth initiatives will focus on energy transition and automation, aligning with Verbrec’s core strategy. The company aims to improve traction in energy transition, provide further geographic expansion, and make capital investments to reduce ongoing costs.
According to Verbrec CEO Mark Read, this sale represents an exciting new chapter for Competency Training. The Verbrec board and executive management congratulated the Competency Training team on their success and expressed confidence in their future under RelyOn’s ownership. An investor presentation regarding the transaction will be released in the coming weeks, the company said.
